| 10K |
Annual
report required by the SEC each
year. Provides a comprehensive overview of a company's state of business.
Must be filed within 90 days after fiscal year end. A 10Q report
is filed quarterly. |
| 12B-1
Fees |
The
percent of a mutual fund's assets used to defray marketing and distribution
expenses. The amount of the fee is stated in the fund's prospectus.
The SEC has recently proposed that 12b1 fees in excess of 0.25% be
classed as a load. A true "no load" fund has neither a
sales charge nor 12b1 fee. |
| Technical
Research |
Analysis
of the market and stocks based on supply and demand. The technician
studies price movements, volume, trends and patterns, which are revealed
by charting these factors, and attempts to assess the possible effects
of current market action or future supply and demand for securities
and individual issues. (see Fundamental
Research) |
| Tender
Offer |
A
public offer to buy shares from existing stockholders of one public
corporation by another company or other organization under specified
terms good for a certain time period. Stock-holders are asked to "tender" (surrender)
their holdings for stated value, usually at a premium above current
market price, subject to the tendering of a minimum and maximum number
of shares. |
| Third
market |
Trading
of stock exchange listed securities in the over-the-counter market
by non-exchange-member brokers. |
| Ticker |
A
telegraphic system that continuously provides the last sale prices
and volume of securities transactions on exchanges. Information is
either printed or displayed on a moving tape after each trade. |
| Time
Value |
The
portion of the premium that is based on the amount of time remaining
until the expiration date of the option contract,
and that the underlying components that determine the value of the
option may change during that time. Time value is generally equal
to the difference between the premium and the intrinsic value. |
| Trader |
Individuals
who buy and sell for their own accounts for short-term profit. Also,
an employee of a broker/dealer or financial institution who specializes
in handling purchases and sales of securities for the firm and/or
its clients. (see Investor, Speculator) |
| Trading
Floor |
(see Floor) |
| Trading
Halt |
The
temporary suspension of trading in a security, usually for 30 minutes,
while material news from the issuer is being disseminated over the
news wires. A trading halt gives all investors equal opportunity
to evaluate news and make buy, sell, or hold decisions on that basis.
A trading halt may also be imposed for purely regulatory reasons. |
| Trading
Posts |
The
17 horseshoe-shaped counters manned by clerks and specialists on
the Trading Floor of the NYSE are like stores where individual stocks
are bought and sold. Each trading post is responsible for over 100
stocks. The actual buying and selling takes place around each post. |
| Transfer |
This
term may refer to two different operations. For one, the delivery
of a stock certificate from the seller's broker to the buyer's broker
and legal change of ownership, normally accomplished within a few
days. For another, to record the change of ownership on the books
of the corporation by the transfer agent. When the purchaser's name
is recorded, dividends, notices of meetings, proxies, financial reports
and all pertinent literature sent by the issuer to its securities
holders are mailed direct to the new owner. (see Registrar, Street
Name) |
| Transfer
Agent |
A
transfer agent keeps a record of the name of each registered shareowner,
his or her address, the number of shares owned, and sees that certificates
presented for transfer are properly cancelled and new certificates
issued in the name of the new owner. (see Registrar) |
| Treasuries |
Debt
obligations of the U.S. government. Treasuries are among the safest
investments, since they are secured by the full faith and credit
of the government. The interest of Treasuries is exempt from state
and local taxes but is subject to federal income tax. There are three
types of treasuries: Treasury Bills, with maturities of one year
or less; Treasury Notes, with maturities ranging from one to 10 years;
and Treasury Bonds, long-term instruments with maturities of 10 years
or more. |
| Treasury
Stock |
Stock
issued by a company but later reacquired. It may be held in the company's
treasury indefinitely, reissued to the public, or retired. Treasury
stock receives no dividend and has no vote while held by the company. |
| Triple
Witching Hour |
The
last trading hour on the third Friday of March, June, September and
December when options and futures on stock indexes expire concurrently.
(see Options and Futures) |
| Turnover
Rate |
Stock
Markets - The volume of shares traded in a year as a percentage of
total shares listed on an Exchange, outstanding for an individual
issue or held in an institutional portfolio.
Mutual Funds - A measure of trading activity during the previous year,
expressed as a percentage of the average total assets of the fund. A turnover
ratio of 25 % means that the value of trades represented one-fourth of
the assets of the fund.
Finance - The number of times a given asset, such as inventory, is replaced
during the accounting period, usually a year.
Corporate - The ratio of annual sales to net worth, representing the extent
to which a company can growth without outside capital. |
| Two
Sided Market |
The
obligation imposed by the NASD that Nasdaq Market Makers make both
firm bids and firm asks in each security in which they make a market. |
| Type |
The
classification of an option contract as either a put or
a call. |
